Employer’s Responses to the Proposed Removal of Level 7 Apprenticeship Funding

Throughout the last month, there has been much concern across the skills sector about the future of Level 7 apprenticeships. The Government wants to ‘rebalance’ funding towards young people and reduce funding for Level 7 apprenticeships to drive this. Whilst many in the skills sector support focused funding on lower-level apprenticeships and the young people who use them, it ignores the impact that higher-level apprenticeships provide.

The Level 7 Accounting or Taxation Professional apprenticeship, for example, has been instrumental in addressing skill shortages in the accountancy sector, supporting economic growth, and driving social mobility. Each year, over 7,000 young people, aged 24 or below, start their journey toward becoming Chartered Accountants. Many employers, particularly non-levy firms and public sector employers like the NHS, rely heavily on Level 7 levy funding to train high-level accountants.

Accountancy training firm, First Intuition, surveyed over 225 employers of accountancy apprentices for their views on the benefits and impact of Level 7 apprenticeships in the accountancy sector, and what government funding for the programme has done for their firms.

Findings reveal the huge levels of support for continued funding of Level 7:

• 83% of non-levy employers employ a greater number of accountancy trainees because of Level 7 funding
• 76% of employers who train Level 7 accountancy apprentices have offices based in towns and rural areas
• 52% of employers say that the Level 7 apprenticeship has improved the diversity of trainees they support
• 93% of employers have ambitions for entry-level apprentices at Levels 2, 3 or 4 to progress to a Level 7 apprenticeship programme
• 91% say that when apprentices progress to a higher level they recruit to backfill roles at a lower level
• 95% of employers stated that Level 7 apprenticeships are an important, very important or extremely important way to develop talent in their organisation

Employer’s voices:

Strong views were given by employers from all across the country who currently use the Level 7 apprenticeship to support the development of Chartered Accountants in their organisations:

Jonathan Carr ACA, Co-Owner & Director at Gravitate Accounting in Sheffield said,

“Without apprenticeship funding we just wouldn’t be able to offer L7 qualification to our teams without significant financial burden which will mean that we reduce our recruitment drives at lower apprentice levels as we will have less opportunity to support them through their professional studies.”

Chloe Britnell, Partner at PJCO Chartered Accountants, Shoreham by Sea, West Sussex, agrees, saying 

“before the Level 7 Apprenticeships we would hire at most two degree leavers, some years just one. Since the introduction of the Level 7 Apprenticeships, we have seen increased interest in our scheme and have been able to hire four Level 7 starters a year. We have also been able to extend our offering to school leavers, and when we hire at Level 3 or Level 4 it is not simply to complete at those levels but to progress all the way to Level 7. I am absolutely certain that reducing funding for Level 7 will restrict the number of individuals that we can offer these opportunities to.”

Jill Wright, Director at Kirk Newsholme Chartered Accountants in Leeds confirmed

“The development of our business and our success in employing and training our team and servicing our clients is based on our ability to offer training and development at Level 7 in the professional exam routes that we offer. Without the financial support we receive through the levy we would inevitably be more limited in how many new trainees we could fund through their training and hence be restricted in offering as many roles to future young people.”

Darren Eastham, Director of Wheawill & Sudworth, Huddersfield, stresses that

“the introduction of Level 7 apprenticeships has been invaluable to our business and the wider economy. We have found that young apprentices who complete Level 7 apprenticeships emerge as well-rounded leaders, with the knowledge and skills to take on senior roles and influence business strategy. We strongly support the continuation of funding for Level 7 apprenticeships.”

According to Andrew Taffs, Partner at Giess Wallis Crisp Chartered Accountants in Harlow,

“the apprenticeship funding enables us to have a continuous year-on-year program and stream of apprentices which we may not be able to afford without the funding.”

Furthermore, Alex Ditalia-Riley, Senior Accountant at Leeds Teaching Hospital NHS Trust, commented,

“One of the biggest benefits of the Level 7 apprenticeship is the diversity of people it brings in. It opens doors for people from all sorts of backgrounds, many of whom wouldn’t have been able to afford a higher-level qualification otherwise. If funding for the Level 7 apprenticeship was removed, it would be much harder for us to develop the talented, well-rounded professionals that we have a huge shortage of.”

Jenny Milton, Practice Manager at Hardcastle Burton, Royston, added

“We take school leavers on and start them on Level 3, but this is always with a plan for them to progress to Level 7. Young people need goals and aspirations to motivate them. Without funding, we would take on fewer learners. It would likely be less than 50% of the current numbers.”

Clare Wilson, Group HR Manager at LB Group in Chelmsford, puts it very simply:

“Level 7 apprenticeships increase employee diversity and employee retention.”

The Government needs to listen and engage with employers

The apprenticeship model has been highly effective in attracting and retaining young talent in the accountancy sector, and in fostering career progression from Accounting Technician to Chartered Accountant. Over 96% of apprentice accountants cite that they feel it is important to achieve a Level 7 apprenticeship to fulfill their long-term career aspirations. Removing this pathway would not only limit career opportunities for young people but also reduce their motivation to pursue a profession vital to the UK economy.

First Intuition urges the Government to engage with employers who depend upon Level apprenticeships in accountancy, particularly SMEs and those in the public sector. This will allow policy-makers to fully understand the critical role that Level 7 plays in supporting economic growth, social mobility, and the future of high-level finance professionals in this country.